Australian bond futures prices rallied after the release of weak business investment figures drove traders to safe haven assets.
Capital expenditure (capex) was down 5.2 per cent in the December quarter, official figures showed, worse than market expectations of a one per cent fall.
The Australian Bureau of Statistics data also shows businesses collectively expect to invest $124.88 billion in the 2014/15 financial year, which is 17.4 per cent lower than the first estimate for 2013/14.
ANZ interest rate strategist Zoe McHugh said the bond market opened firmer on the back of worries about tensions between Russia and the Ukraine.
"We opened not that much higher this morning but then saw a rally on the capex data," she said.
"That was broadly weaker than the market was expecting."
Ms McHugh said the data suggested to the market that the pick up in business investment was a little bit behind that of expectations.
"That drove the market quite high and that's where it stayed for the rest of the day," she said.
At 1630 AEDT on Thursday, the March 2014 10-year bond futures contract was trading at 96.000 (implying a yield of 4.000 per cent), up from 95.935 (4.065 per cent) on Wednesday.
The March 2014 three-year bond futures contract was at 97.120 (2.880 per cent), up from 97.030 (2.970 per cent).
Early on Friday morning, Australian time, US Federal Reserve chair Janet Yellen will testify to the US Senate.
Ms McHugh said there will be a lot of interest over Dr Yellen's interpretation of recent weak economic data from the US, which has been attributed to a run of terrible weather across America in the past couple of months.